A. For the purpose of promoting and encouraging the breeding of Arizona bred horses, each meeting shall offer not less than one race each day of racing which shall be exclusively for Arizona bred horses. In the event such race does not fill with at least five Arizona bred horses, it shall be offered as an open race in which Arizona bred horses have a preference of entry.

B. To promote and improve the breeding of horses within this state, a sum of money equal to ten percent of the first money of every purse won by a horse bred in this state shall be paid by the permittee to the owner or lessee, or his heirs, devisees or successors, of the dam of the animal at the time the animal was foaled. Such amount shall be paid within thirty days after the close of the racing meeting. All claims or disputes as to the dam of a horse bred in this state shall be determined by the permittee, subject to review by the commission, and the decision of the commission shall be final and conclusive. A horse bred in this state means a horse foaled in this state and certified by the commission. To be eligible for Arizona bred certification, the horse must be physically present within this state for not less than six months during the period from the date he is foaled to the first anniversary date of his having been foaled.

C. The commission may contract with a breeders’ association to certify that an animal is Arizona bred or is an Arizona stallion. The commission may authorize the association, racing organization or department to charge and collect a reasonable fee from a stallion owner to cover the cost of certification or transfer and verification that the animal is Arizona bred or an Arizona stallion.